Africa urged to diversify economy

Slum in oil prices is crippling the economies of Nigeria, Cameroon and Gabon."We have to presume that the low (commodity) prices will be around for a long time,” IMF First Deputy Managing Director David Lipton said at a news conference at the World Economic Forum on Africa which is going on in Kigali, Rwanda.

African countries have been urged by the International Monetary Fund to diversify their economies and control public spending following low commodity prices.

"We have to presume that the low (commodity) prices will be around for a long time,” IMF First Deputy Managing Director David Lipton said at a news conference at the World Economic Forum on Africa which is going on in Kigali, Rwanda.

“It makes sense for countries to begin to adjust … which means controlling spending, finding ways to diversify the economy, finding ways to raise other forms of government revenue through the tax system,” he said

Mining activities in South Africa, Ghana and Zambia is at its lowest.

The Ghana Cedi has lost about 44 percent of its value since January 2014, while the South African rand lost close to 50 percent of its value last year.

In Nigeria, the government responded by fixing the dollar rate, while in other countries, trade deficit has widen.